Committing to a Greener Retail

In a context where environmental awareness is gaining importance, the
fashion industry giant LVMH, and Paris Good Fashion, the association
of fashion professionals working for a more responsible fashion, have
joined forces to launch an innovative initiative: the Green Store &
Building Challenge. This ambitious collaboration aims to raise
awareness and mobilise key players in the sector, from brand managers
to store owners, towards a significant reduction in the ecological
impact of fashion commerce. In an exclusive interview with Nicolas
Martin, Sustainable Store Planning Manager at LVMH Group,
FashionUnited explores the objectives that this initiative aims to
achieve in the transition towards a more sustainable fashion
industry.

LVMH and Paris Good Fashion collaborative guide for stores

The idea of the Green Store & Building Challenge partly stems from
the Stores Awards organised by LVMH every two years since 2016,
Nicolas Martin tells us. Following the success of these events, the
Group proposed extending this approach to the Paris Good Fashion
network, thus giving rise to the Green Store & Building Challenge.
Before its launch, LVMH and Paris Good Fashion collaborated on
developing a comprehensive guide outlining key action points and
including various recommendations to assist stores in moving towards
sustainability. “We drew from our experience and internal framework
consisting of 60 sustainability criteria. To involve the greatest
number of partners, we simplified it, in accordance with the trusted
third party that accompanies us”, says Nicolas Martin.

“Sustainability is no longer a choice; it is an
obligation. What changes is the speed at which these practices are
adopted. And here, the human factor is important. That is why ‘Store
Challenges’ have their rightful place in the arsenal of transformation
tools.”

An insight into the state of sustainability in the retail sector
by Nicolas Martin

When we question Nicolas Martin about the current state of
sustainability in stores in France and around the world, he emphasises
the complexity of painting a complete picture of this constantly
evolving sector. However, he shares two positive aspects that fuel his
optimism: the tightening of regulations, particularly with initiatives
such as RE2020 to improve the energy performance of buildings, and the
European Taxonomy, which designates a classification of economic
activities with a favourable effect on the environment and aims to
channel investments towards sustainable projects. He also notes the
growing vigilance of younger generations regarding the importance of
sustainability. “Sustainability is no longer a choice; it is an
obligation. What changes is the speed at which these practices are
adopted. And here, the human factor is important. That is why ‘Store
Challenges’ have their rightful place in the arsenal of transformation
tools,” he asserts.

Regarding the areas of improvement deemed priorities by LVMH for
stores, three points stand out: turning off lights after 10 pm, a
practice adopted for over a year in their shops; closing doors, a
cultural shift aimed at reducing energy consumption; and measuring
installed lighting power, highlighting the importance of energy
efficiency even in the use of technologies such as LEDs. However,
despite these advancements, Nicolas Martin acknowledges that there is
still much to be done to enhance the sustainability of stores. He
underscores the need for a holistic approach and the involvement of
all stakeholders in the sector to truly transform the retail landscape
towards greater sustainability.

LVMH: how sustainable stores reduce costs and enhance customer
experience

In practical terms, implementing the recommendations advocated by
LVMH in various stores offers two tangible benefits. Firstly, it helps
to reduce the operating costs (Opex) of the boutiques, which
positively contributes to their profitability. Additionally, “a
sustainable store provides a more pleasant working and shopping
environment for our employees and customers, with better air and light
quality, thereby enhancing the success of the retail space,” explains
Nicolas. Furthermore, in terms of additional costs, they are generally
minimal. Often, what is beneficial for the environment also proves to
be cost-effective. For example, furniture reuse and a frugal approach
in selecting materials or lighting help to cut costs. This
common-sense approach, according to Nicolas, and efficiency are well
illustrated by the higher-rated projects, which are also less
energy-intensive. The only additional cost that LVMH’s Sustainable
Store Manager deems acceptable is the extra time needed for their
teams and partners to be more attentive and meticulous in managing
material and energy resources.

LVMH’s internal KPIs: simplifying existing standards and labels

Is LVMH’s aim to label and certify such a prize? Nicolas indicates
that there are already a significant number of labels worldwide, among
which eight have been grouped to form an internal framework at LVMH.
The group has thus relied on standards such as LEED ID + C (Leadership
in Energy and Environmental Design) for interior design and
construction (ID+C), an American program for certifying green
buildings used worldwide, and the Energy Performance Diagnostic (DPE),
a French certificate that provides information on the energy and
climate performance of a home or building. “In fact, these labels and
certifications are means. The real objective is change, action,
continuous improvement. However, the more complex a standard is, the
less we know what to do. There is often a lack of pedagogy with
non-experts in construction. But it’s possible.” LVMH strives to make
existing labels and standards accessible to a wide audience. “With the
Paris Store Challenge, the aim is really to shed light on ‘only’
twelve simple KPIs, which easily improve your boutique’s energy
profile and its indirect impact on biodiversity. I would be delighted
if we could display them at the entrance of boutiques, just five
technical pieces of information, similar to how we display a
‘nutriscore.’ All this linked to our public guide, on a mini-website,
which explains what these parameters mean. It is all about education,”
he explains.

Moving beyond green contracts: the nuances of sustainability in
fashion boutiques

When asked about the potential extension of recommendations to
other areas such as renewable energy and water management, Nicolas
Martin highlighted an important distinction. Among the twelve criteria
highlighted, none directly concern renewable energy in boutiques. Yet,
this stems from a well-thought-out strategy: energy efficiency takes
precedence over simply resorting to “green” contracts for electricity.
According to him, true sustainability lies in reducing consumption, a
much more challenging task than simply changing energy suppliers.
“You’re right, among the twelve criteria, there is none concerning
renewable energy in boutiques. Do you know why? Because we tend to
forget that efficiency is just as important as switching to a ‘green’
contract for electricity. To be truly sustainable, it is essential to
primarily reduce consumption, which is much more difficult than
changing electricity contracts.” As for the impact of water in
boutiques, it is deemed negligible and therefore not considered a
priority area for improvement.

Regarding the next steps, Nicolas announces LVMH’s intention not to
limit partnerships to the current seven strategic lessors. The Group
aims to expand its collaborations in the field of eco-design,
emphasising the importance of collective progress in this
ever-evolving sector. With ten participants this year in this
challenge and four awards presented, Paris Good Fashion hopes to
triple the number of participants in the 2024 edition.